Based on our analysis, we find the total impact on PC unit growth could be more severe than we are modeling if our cannibalizationrate assumptions prove too conservative, thus making the success of Windows 8 tablets a very important offsetting revenue source.
In addition, the increasing popularity of smartphones and the threat of cannibalization from tablets led to a decline in global PC shipment growth rate.
While the hard disk drive shortage had disrupted the PC market last year, the macro headwinds, cannibalization threat from tablets and the upcoming Windows 8 operating system lunch has further slowed down the PC growth rate this year.